WASHINGTON – President Obama signed an executive order on Friday that directs the government to implement more secure transactions around sensitive data. The new BuySecure Initiative will institute the use of both microchip and PIN technology in government-issued credit and debit cards. The administration is also and joining with leading private players to advance the use of this highly secure technology as the industry standard.

"NACS has been working for many years to promote the use of PIN technology, which has been successfully employed in Europe for years, resulting in dramatic reductions in fraud to the benefit of merchants and consumers alike,” said Lyle Beckwith, NACS senior vice president of government relations, in a press release. 

Beckwith added that PIN technology is the surest and simplest way to ensure card security.

“Even without the use of chip, requiring a four-digit PIN number on all credit card transactions would immediately eliminate the vast majority of card fraud. We agree with the president that this collaborative initiative has the potential to be a premier example of government leadership in driving positive change, in particular to accelerate the widespread adoption of next-generation payment security tools. NACS will redouble its own efforts to work with the administration, Congress and the industry to establish the highest possible protections for businesses and consumers in the very near future,” he said.

According to a statement by the White House, President Obama is calling on all stakeholders to join the administration and a number of major corporations in driving the economy toward more secure standards to safeguard consumer finances and reduce their chances of becoming victims of identity theft — “America’s fastest-growing crime.”

The president will announce the White House Summit on Cybersecurity and Consumer Protection later this year to promote partnership and innovation. The Summit will bring together major stakeholders on consumer financial protection issues to discuss how all members of the U.S. financial system can work together to further protect American consumers and their financial data.

NACS has always supported chip and PIN technology.  Read more about why in “Half Covered.”